ABA Section of Business Law
eSource
Back to the Future - Revisiting the Basics of Securitization and Looking at What Lies Ahead.
- Notwithstanding current market conditions, securitization remains an important and necessary financing tool for residential and other types of mortgage loans and receivables. Securitization experts (1) give a primer on what asset securitization is and why it is important, (2) discuss what went wrong in the securitization process in recent years and what aspects of this key financing tool need to be fixed and (3) explore the possible changes that will be made to securitization programs and documents for future transactions, including such matters as enhanced loan due diligence, third party review for breaches of loan representations and warranties, additional reporting and disclosure requirements and more detailed servicing requirements.
